Hertz Global Holdings Inc (HTZ)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,371,000 | 8,685,000 | 7,336,000 | 5,258,000 | 9,779,000 |
| Total current assets | US$ in thousands | 764,000 | 943,000 | 2,258,000 | 1,096,000 | 865,000 |
| Total current liabilities | US$ in thousands | 3,096,000 | 1,738,000 | 1,592,000 | 2,979,000 | 2,425,000 |
| Working capital turnover | — | — | 11.02 | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,371,000K ÷ ($764,000K – $3,096,000K)
= —
Hertz Global Holdings Inc.'s working capital turnover has shown a consistent increase over the past three years, reflecting an improvement in efficiency in utilizing its working capital to generate sales. The ratio has increased from 3.09 in 2021 to 6.50 in 2022 and further to 10.03 in 2023.
This upward trend indicates that the company has been able to generate more revenue relative to its working capital investment. A higher working capital turnover ratio suggests that the company is effectively managing its current assets and liabilities to support its operations and sales growth.
The significant improvement in the working capital turnover ratio over the years reflects positively on the company's liquidity management and operational efficiency. It indicates that Hertz Global Holdings Inc. has been able to optimize its working capital resources to drive revenue generation, potentially leading to improved financial performance and sustainability in the long term.
Peer comparison
Dec 31, 2023